The Nuclear Decommissioning Authority

09 October 2007

As charged under the Energy Act 2004, the NDA Annual Report and Accounts 2006/7 have been laid before Parliament prior to their official publication.

Key highlights of the year included:

• our expenditure with contractors was £2,192 million (2005/6 £2,022 million) and they delivered a positive cost variance of £208 million against plan, with a cost performance index of 1.10 and a schedule performance index of 0.98. This marks an improvement on the £124 million saved last year and represents a net efficiency of 3.3% on contracted work programmes after payment of incentive fees to our contractors, exceeding the 2% Public Service Agreement (PSA) target;
• the income from commercial operations was £1,206 million, some £112 million less than budgeted largely due to the continued unavailability of THORP to discharge various contract obligations; and
• electricity generation performed well with generation figures marginally above target but softening electricity prices have contributed to an income shortfall of £13 million against budget. Other commercial activities, for example the development of a Property Asset Portfolio demonstrate good progress.

As anticipated last year, the cost of the overall nuclear liability has risen, with a current estimate of £37 billion (compared with £30.6 billion in 2005/6) after discounting and other accounting adjustments.

An Operational Review of the 2006/7 year was published in July and is available on this website.